12/09/2024
Attend the consultative meeting on Alternate Dispute Resolution Amendment bill, with the Hon’ble members of the Legislative Committee of National Council.
The Alternate Dispute Resolution (ADR) Act is highly beneficial for Bhutan for several reasons, particularly considering the ongoing economic development and the increasing complexity of business relationships. Some points that benefits are:
1. Its efficiency in Resolving Disputes:
ADR methods such as mediation, arbitration, and conciliation offer faster resolutions compared to traditional court systems. ADR can alleviate court backlogs and provide swift solutions.
2. Cost-Effective:
Litigation can be expensive, especially for small and medium-sized enterprises (SMEs). ADR methods are generally less costly, providing a more accessible option for businesses, especially MSMEs in regions like Gelephu that are struggling to overcome economic stagnation.
3. Confidentiality:
ADR processes are often confidential, protecting the reputation of businesses involved in disputes. This is particularly important for a small, interconnected society like Bhutan.
4. Preserving Business Relationships:
ADR, particularly mediation, focuses on finding mutually acceptable solutions, which helps maintain business relationships. For a developing nation like Bhutan, fostering strong business relationships is crucial for economic development.
5. Support for Cross-Border and International Trade:
As Bhutan expands its trade, especially with neighboring countries like India, disputes involving international commercial contracts may arise. An ADR Act could help Bhutanese businesses resolve such disputes efficiently and in line with international norms.
8. Global Competitiveness:
Countries with robust ADR mechanisms are seen as more business friendly. Bhutan’s economy, with its growing focus on sectors like tourism, hydropower, and small businesses, could benefit from being viewed as a country where disputes are resolved fairly and swiftly. This would enhance foreign investor confidence and boost Bhutan’s international business profile.
Conclusion:
We often come across with certain disputes which are not conducive to business environment. The implementation of an ADR Act would streamline dispute resolution in Bhutan, reduce the burden on the courts, and create a business-friendly environment. It would also be aligned with Bhutan’s socio-cultural values while meeting the needs of its growing economy and fostering better business relations both domestically and internationally.